Boston, MA -- (SBWIRE) -- 06/19/2014 -- Favourable economic conditions in Bolivia in 2013 encouraged consumers to continue buying non-grocery products. Non-grocery retailers as a result continued to open outlets and expand their current ones to accommodate the increasing demand for their products. For instance, drugstores/parapharmacies continued to increase in number at a very fast pace throughout the nation. During the first quarter of 2013 alone, there was an increase of 9% in terms of outlets. Bolivians are favouring this growth by preferring formal non-grocery retailers due to the convenience they offer to them. Formal non-grocery retailers offer warranties, legitimate products, more spacious environments in which consumers can try products before buying them, and very competitive prices.
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Farmacorp SA and Manufactura Boliviana SA lead sales of non-grocery retailers in Bolivia. These two companies have a large presence in the country. Farmacorp SA continued to grow at healthy rates in 2013 thanks to its investment in expansion and new outlet openings in popular areas of Bolivia. In 2013 alone, the company opened 10 outlets in the three major cities of Bolivia, becoming the largest drugstore/parapharmacy in the country. The company invests in consumer loyalty using schemes like store cards and monthly magazines that are given free to consumers.
2013's growth rate was a little higher than the CAGR registered for the overall review period. The main reason behind this growth is that retailers are continuing to expand beyond urban areas to attract consumers from other socioeconomic segments. Consumers in Bolivia still enjoy favourable economic conditions and are able to spend on items that they consider essential. Also, retailers like Tienda Amiga are investing in credit opportunities to reach a wider base of consumers. The 3% CAGR expected over the forecast period is likely to be fuelled by retailers' initiatives to conquer new segments of the population and offer additional benefits to consumers that informal retailers do not.